INTERVIEW-Japan must avoid vacuum without BOJ gov -opposition leader

Reuters

By Linda Sieg and Yuko Yoshikawa

TOKYO, Jan 16 (Reuters) - Japan must not allow a leadershipvacuum at the Bank of Japan when its governor's term ends inApril, said the leader of Japan's main opposition party, whichdelayed the appointment of a new governor at the last leadershipchange five years ago.

But Democratic Party of Japan (DPJ) leader Banri Kaieda alsotold Reuters on Wednesday that the next Bank of Japan (BOJ)governor should not be a mere "yes man" to the government.

BOJ Governor Masaaki Shirakawa's term ends on April 8 andPrime Minister Shinzo Abe has said he wants the next top centralbanker to share his views on the drastic easy money policy thepremier is advocating to escape deflation and revive theeconomy.

"There is one thing on which we must reflect. Last time, theBOJ governor could not be decided (for 20 days). We must notrepeat that mistake," Kaieda said in an interview.

But he added: "It is preferable that the person not be a'yes man' to the government. It is important to cooperate withthe government but it should be someone who doesn't just dowhatever the government says, but has appropriate knowledge andinsight."

Kaieda, 62, was elected Democratic Party leader afterthen-Prime Minister Yoshihiko Noda resigned following theparty's devastating defeat in a December election. The partytook a mere 57 seats in the 480-member lower house, a fourth ofits pre-poll presence and a sliver of the 308 seats it won whenit surged to power in 2009.

The Democrats, the biggest opposition block the last time aBOJ governor's term expired in 2008, refused to approvegovernment candidates who had been former finance ministryofficials, leading to a gap of several weeks before anappointment was made to fill the vacant position.

Approval of both houses of parliament is required for theBOJ appointment, and the ruling Liberal Democratic Party and itssmaller partner lack a majority in the upper chamber, so theywill need support from some opposition lawmakers.